Sec4-P26

A borrower is provided a written list of approved third-party service providers but chooses to use a title company not on that list. At closing, the fee for that service is higher than what was originally estimated. The borrower questions whether the lender must cure the increase. How should this be handled?

A borrower selects a third-party service provider from the lender’s written list. At closing, the total of those service charges increases. The borrower questions whether this violates tolerance rules. How should the lender evaluate this change?

A borrower selects a settlement service provider from the lender’s list. One fee increases substantially, but the total of all charges subject to tolerance remains within the allowed range. The borrower claims this is a violation. How should this be explained?

A borrower selects a homeowners insurance provider not identified by the lender. The premium at closing is higher than originally estimated. The borrower questions whether the lender must cure the difference. What is the correct determination?

A borrower selects a title insurance company that was not listed by the lender. The title fee increases prior to closing. The borrower questions whether the lender must absorb the difference. How should this be handled?

A borrower selects a third-party provider from the lender’s list, and multiple service fees increase slightly before closing. The combined increase exceeds the 10-percent tolerance. The borrower asks who must cover the excess amount. What is the correct outcome?